R |
| Rate reduction option |
| A fixed-rate mortgage that includes a provision that gives the borrower an
option to reduce the interest rate (without refinancing) at a later date. It is
similar to a prearranged refinancing agreement, except that it does not require
re-qualifying. |
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| rate lock |
| A commitment issued by a lender to a borrower guaranteeing a specified interest
rate for a specified period of time. See lock-in.
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| real estate agent |
| A person who is normally licensed by the state and who, for a commission or a
fee, assists in negotiating a real estate transaction.
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| Real Estate Settlement Procedures Act (RESPA) |
| A consumer protection law that, among other things, requires advance disclosure
of settlement costs to home buyers and sellers, prohibits certain types of
referral and other fees, sets rules for escrow accounts, and requires notice to
borrowers when servicing of a home loan is transferred.
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| real property |
| Land and appurtenances, including anything of a permanent nature such as
structures, trees, minerals, and the interest, benefits, and inherent rights
thereof.
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| Realtor® |
| A real estate broker or an associate who holds active membership in a local
real estate board that is affiliated with the National Association of Realtors.
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| Reduced Documentation |
| A method used to determine income when qualifying a borrower(s) for a loan.
Borrower(s) provide their income, however no verification documentation is
typically required. |
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| rescission |
| The act of cancellation or annulment of a transaction or contract by the
operation of a law. Borrowers usually have the option to cancel certain credit
transactions, including a refinance or home equity transaction, within three
business days after consummation (when the consumer becomes contractually
obligated by, for example, signing the loan documents).
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| recorder |
| The public official who keeps records of transactions that affect real property
in the area. Sometimes known as a "Registrar of Deeds" or
"County Clerk."
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| recording |
| The noting in a book of public record of the terms of a legal document
affecting title to real property, such as a deed, a mortgage note, a
satisfaction of mortgage, or an extension of mortgage.
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| refinance transaction |
| The process of paying off one loan with the proceeds from a new loan, typically
using the same property as security for the new loan.
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| rehabilitation mortgage |
| A mortgage created to cover the costs of repairing, improving, and sometimes
acquiring an existing property.
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| remaining balance |
| The amount of principal that has not yet been repaid. See principal balance.
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| remaining term |
| The original amortization term minus the number of payments that have been
applied. |
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| rent with option to buy |
| See lease-purchase mortgage loan.
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| repayment plan |
| An arrangement made to repay delinquent installments or advances. Lenders'
formal repayment plans are often called "relief provisions."
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| revolving liability |
| A credit arrangement, such as a credit card or HELOC, that allows a customer to
borrow against a predetermined line of credit when purchasing goods and
services. The borrower makes payments on the amount that is actually borrowed
plus any interest due.
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| Request for Notice of Default |
| A recorded document that obligates the holder of the first mortgage lien to
notify subordinate lien holders in the event of default by the borrower. |
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| right of first refusal |
| A provision in an agreement that requires the owner of a property to give
another party the first opportunity to purchase or lease the property before he
or she offers it for sale or lease to others.
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| right of ingress or egress |
| The right to enter or leave designated premises.
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| right of survivorship |
| In joint tenancy, the right of survivors to acquire the interest of a deceased
joint tenant.
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| Rural Housing Service (RHS) |
| An agency within the Department of Agriculture. This agency provides financing
to farmers and other qualified borrowers buying property in rural areas who are
unable to obtain loans elsewhere. Funds are borrowed from the U.S. Treasury.
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